VGSf - WU Vienna campus

Papers accepted for publication

Con­grat­u­la­tions to our af­fil­i­ated fac­ulty mem­ber To­bin Hanspal! His pa­per “Con­sum­ing Di­vidends” has been ac­cep­ted for pub­lic­a­tion by the "Re­view of Fin­an­cial Stud­ies" and his pa­per "The Char­ac­ter­ist­ics and Port­fo­lio Be­ha­vior of Bit­coin In­vestors: Evid­ence from In­dir­ect Crypto­cur­rency In­vest­ments" by the "Re­view of Fin­ance".


Con­sum­ing Di­vidends
Co-Au­thors: Kon­stantin Bräuer (Goeth­e-Uni­versität Frank­furt) and Andreas Hack­ethal (Goeth­e-Uni­versität Frank­furt)

Ab­stract: This pa­per stud­ies why in­vestors buy di­vidend-pay­ing as­sets and how they time con­sump­tion ac­cord­ingly. We com­bine ad­min­is­trat­ive bank data link­ing cus­tomers’ con­sump­tion and in­come to port­fo­lio data and sur­vey re­sponses on fin­an­cial be­ha­vior. We find that private con­sump­tion is ex­cess­ively sens­it­ive to di­vidend in­come. In­vestors across wealth, in­come, and age dis­tri­bu­tions in­crease spend­ing pre­cisely around days of di­vidend re­ceipt. Our res­ults are at odds with a num­ber of ex­ist­ing ra­tional and be­ha­vi­oral ex­plan­a­tions such as fin­an­cial con­straints and im­puls­ive­ness. In­stead, con­sump­tion re­sponses re­flect ‘planned’ ex­cess sens­it­iv­ity, driven by in­vestors who se­lect di­vidend port­fo­lios, anti­cip­ate di­vidend in­come, and plan con­sump­tion ac­cord­ingly.

The Char­ac­ter­ist­ics and Port­fo­lio Be­ha­vior of Bit­coin In­vestors: Evid­ence from In­dir­ect Crypto­cur­rency In­vest­ments

Co-Au­thors: Andreas Hack­ethal (Goeth­e-Uni­versität Frank­furt), Domi­n­ique M. Lam­mer, and Kevin Rink (Goeth­e-Uni­versität Frank­furt)

Ab­stract: Crypto­cur­ren­cies have re­ceived grow­ing at­ten­tion from in­di­vidu­als, the me­dia, and reg­u­lat­ors. However, little is known about the in­vestors whom these fin­an­cial in­stru­ments at­tract. Us­ing ad­min­is­trat­ive data, we describe the in­vest­ment be­ha­vior of in­di­vidu­als who in­vest in crypto­cur­ren­cies with struc­tured re­tail products. We find that crypto­cur­rency in­vestors are act­ive traders who are prone to in­vest­ment bi­ases and hold risky port­fo­lios. Crypto­cur­rency in­vestors are more likely to in­vest in stocks with high me­dia sen­ti­ment and more likely to em­ploy heur­ist­ics from tech­nical ana­lysis. In line with at­ten­tion ef­fects and anti­cip­at­ory util­ity, we find that the aver­age crypto­cur­rency in­vestor sub­stan­tially in­creases ac­count lo­gins and trad­ing activ­ity after his or her first crypto­cur­rency pur­chase. Fur­ther­more, crypto­cur­rency in­vestors tend to tilt their port­fo­lios to­wards even more risky se­cur­it­ies after crypto­cur­rency ad­op­tion. Our res­ults doc­u­ment which in­vestors are more likely to ad­opt new fin­an­cial products and help in­form reg­u­lat­ors about in­vestors’ vul­ner­ab­il­ity to crypto­cur­rency in­vest­ments.

Tobin Hanspal

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